Foreign Nameplates Cost Less to Advertise
Honda got the biggest bang for their American advertising buck in 2006, according to Brandweek. A study by research firm Compete reveals that the Tokyo transplant spent just $118 in advertising per brand shopper last year, besting Toyota by $40 per. Ford was the biggest spender, forking-out $240 per vehicle to entice each shopper into their showrooms. Overall, foreign nameplates averaged $182 per shopper in 2006, while domestic manufacturers spent an average of $223 per shopper. Looking at individual brands, Scion spent a whopping $30 per shopper. "The smaller brands with a clearly defined target performed the best," Compete's Mike Jennings opined. "Brands like Scion and MINI have a product line that also corresponds, whereas Ford has to go from an F250 truck to a Fusion. It shows a fundamental of marketing, which is, ‘ID a target and hit it.'" It also shows that a product with a good reputation and high "gotta have it" factor doesn't need a lot of advertising. And we reckon GM's $150m Malibu launch campaign will probably help the General unseat Ford's ad spend per customer when the 2007 figures are released.